Wednesday, 14 September 2011

The curious case of Mad Maxdolf’s sudden prosperity

A short while ago I asked regular correspondent Franz to explain something about the German economic miracle during the thirties. For very obvious reasons we don't hear too much about that these days!

Anyway, here's his report (I don't think he gives his countrymen of the time due credit, but I'll let you be the judge of that).

A couple of days ago the Savant suggested that I write a piece about the interwar period in Germany. Specifically the astonishing growth that took place between 1933 and 1939. "Dang", I thought. Couldn't my writing debut be about a more inherently crowd-pleasing subject? Puppies? Chicks? Or more in tune with the Savant's site: Chimps? Anyhow, I'll try do deal with it as gracefully as I can.

Ladies and gentlemen: I give you the Interceptor!

Now what has Mel's car from Road Warrior to do with anything? Bear with me. That beat up looking thing is actually the best analogy for the German economy of 1933. Because under the shabby looking exterior the Interceptor had a 300 hp turbocharged engine complete with nitrous oxide injection. (For mr a: I believe Mel was driving a souped up Ford Falcon XB)
Similarly, the German economy looked terrible when Hitler took power. But under its hood was an almost debt free society. Why? Because the hyperinflation of '23 and the depression a couple of years later had purged most debts from the system. Even the reparation payments stipulated in the Versailles treaty had been abandoned in 1932. A clean slate for everybody.

More importantly, there were millions of superbly educated young men willing to work for pennies. People like the young Wernherr von Braun or Albert Speer came by the dozen and quite cheaply so.

How about that for stimulus?

Yes, there were nuisances. Particularly Jewish organizations calling for boycotts of German goods. But on the other hand Germany was THE place to be, much like China in our time. And no anglo-saxon businessman worth his salt wanted to sit still while everybody else was dancing. So the same businessmen who publicly disapproved of Hitler's anti-semitism were glad to do business him in a not so public fashion. IBM, General Motors, Standard Oil. They all had their Zweigstellen in Germany, and all were making buckets full of cash (

Back to Hitler at the Interceptor's wheel: It didn't take him long to realize what a superb vehicle it was. Ever the gambler he launched huge rearmament and public work programs, incurred huge debts and wagered that Germany would win the next war and make the rest of Europe pay for the privilege of being conquered. When Hjalmar Schacht - chief of the central Reichsbank and slayer of the '23 hyperinflation - finally realized what was going on, he quit his job in disgust.

That was in 1937.

For two more years accounting shams like the famous Mefo-bills ( afforded Hitler the chance to stoke arms manufacturing to his heart's content. Two years later, the cylinders of the Interceptor's engine were close to galling. For Germany in 1939, it was literally: "To Warsaw, Paris and Moscow or bust!" Afterwards, a centrally planned war economy helped to camouflage the catastrophic economic situation of the Reich until the red army auditors moved into Berlin with T-34s.

Any lessons in all that?

During his last days in the bunker Mad Maxdolf probably realized that you may own an Interceptor, but that in itself doesn't guarantee you to leave the thunderdome in one piece.
What else? Maybe the realization how little impact the outside world and its various boycotts had on Germany's economy. Our country was following its own triumpahnt-tragic-trajectory and the shrieks of the World Jewish Congress didn't dent that trajectory one bit.

Despite the rethoric there were legions of money cockroaches that competed for Adolf's business. Iceland learned a similar lesson since 2008. Granted, they didn't commit the ultimate sin of overt anti-semitism. They only stiffed some bankstas, which only amounts to second degree anti-semitism. Anyhow: When they kicked the bankers in the shin, all establishment economists predicted that Iceland would become a pariah state, perenially on the brink of starvation, the North Korea of - well - the north.

It appears however that rumors of their demise were somewhat exaggerated. Quite to the contrary: Their little island seems to contain a healthy, strong-willed and productive people. While no heavy Interceptor, this tiny nation can definitly boast of Porsche-Boxter status. Short of invading Norway, there seems to be little chance of derailing their success story at this point. (

Within the European Union a similar thing will probably occur fairly quickly. A country like Austria ( or Finnland will elect a right wing government and our overlords will proclaim that the world is coming to an end and demand the heftiest sanctions. But then the sun will rise and shine over Austria and Finnland as it had before. On a populace both more prosperous and free for escaping the commissariat of Brussels. I for one will consume several bottles of champagne that day and marvel at our overlords exposed for the paper tigers they are and have been for a long time.

One more thing: The following clip is from “Road Warrior”. When it was made, the film was intended to portray an dystopian end-of-days scenario. But doesn’t it look rather idyllic compared to the footage coming out of London not so long ago? Just a thought.


Jeremy said...

Franz, I'm amazed at how little impact the Jewish boycott had. I thought that'd have been kiss of death.

Anonymous said...

Another reason to put a bounty on Canadians.

Robert in Arabia

Anonymous said...

Just think how great the 'recovery' would have been without the jew boycott! The US and the entirety of 'the west' could recover quite well if we would rid ourselves of, and ignore, the jew.

Anonymous said...

I know this is off-topic, Savant, but I think you'll see why I could not resist posting.

In what is becoming America's national sport a 'groid and two buddies were arrested last week in connection with the (drug-related) shooting death of 24-year-old Billy J. Rutherford.

The name of the 'groid, and how I am so sure he's a groid? Without seeing a picture?

Shitavious J. Cook, 15, was arraigned Thursday morning on his charges, punishable by up to life imprisonment.

He also was charged with attempted first-degree murder and aggravated battery with a firearm for a shotgun attack on a motorcyclist who Cook mistakenly believed to be Rutherford.

Felton T. Estes, 28, and Demeco D. Hill, 35, are each facing 20 to 60 years in prison, with a 15-year enhancement for carrying a firearm during the crime.

No shit ... avious
Another keyboard shot to hell ....

Uncle Nasty

PS:- You can't make this ... Oh, bugger, there I go again.


Anonymous said...

Back to reality.

Thanks for the article, Savant. I had always wondered about the '30's economic miracle of Hjalmar Schacht.

Great to see it laid out so clearly. One of the characters in the Covington quartet outlined the history, but needless to say, put a -- shall we say? -- Northwest spin on it.

Uncle Nasty

Anonymous said...

A truly mad Austrian friend of mine, many years ago, emigrated to Australia, a country he had lived in before.
Apparently a great sport in those Pre-Green days was shark hunting.

My buddy would go out in a boat (a strong boat) with a Johnson semi-auto rifle and shoot a shark which would, in turn be attacked by other sharks who, in their turn would be injured and attacked by still more sharks.

Apparently this is called a feeding frenzy.

Here is the Oh-so-Green, Politically-acceptable 21st Century equivalent:-

CRASH 2: Breaking … ECB chucks half trillion dollars at banks as predators circle French majors

Next Greek bailout conditions eased by Brussels as France panics

There is a very real fear in Parisian banking circles that Societe Generale will be a takeover victim if its current share-price plunge continues. And The Slog understands that a name in the frame as the predator is JP Morgan Chase. The market value of Societe Generale, France’s third- largest bank by assets, is now about $18.3 billion – 25% less than it was a month ago. In contrast, New York-based JPMorgan Chase & Co. is valued at $126.7 billion. In an obvious attempt to prop up the French banking system, the ECB has lent $575M ([sic] -- surely $575B? - UN) over the last few days.

Referring to the SocGen crisis, Jean-Pierre Balligand, a Socialist Deputy in the National Assembly, is quoted today as saying, “This would be taking advantage of the euro crisis and that’s not good for France.” But then, picking the best bits off a carcass has always been one of Morgan the Pirate’s specialisms – pace the investment book at Northern Rock. The EU’s Central Bank (ECB) said two bidders had taken advantage of the weekly offer of dollar liquidity it operates with the US Federal Reserve – without naming the banks involved. But I understand they are Societe Generale and Credit Agricole.

Looks like the Nazis had a better handle on things.

Hjalmar, where are you, now that we really need you?

Uncle Nasty

Anonymous said...

Another reason to put a bounty on Canadians.

Robert in Arabia

There it is, Robert. We live in the era of a free pass if you're a nog, a fag or the bearer of tits -- straight or carpet-muncher.

Who was it who said:- "All debts are settled."?


Anonymous said...

Savant, you need to run something on the ATF Fast and Furious scandal:,0,3828090.storygallery

Rumor has it, runs all the way up to DOJ jig boss Eric Holder and Da Big Nig Obama himself!

Heraclitus said...

I too used to wonder about this topic, so thanks for the explanation. Just shows what a taelnted ahrd-wroking people can do when they put their minds to it, and despite colossal opposition. We can all learn!

PreatorianXVI said...

Might not look like it currently but keep an eye on the Poles, they have been tipped to become a super power.

The Old Polish Kingdom once was one.

Anonymous said...

Accurate and funny as always Franz.(and yes,a Falcon XB Hardtop.Using that car,I believe,automatically alienated the other half of Australia who adore Holden).

And,like Savant,I think you are being too modest about the inate talent,indeed genius of your countrymen(and I mean men) to be able to pick themselves up off the ground,dust themselves down,and immediately start rebuilding.

I know it has been discussed here before,but what a blessing it would have been for the planet,if Adolf had just dropped dead.Say in 1938 a few days after Anschluss.

Presumably Goering would then have become,at least nominally,the leader,though I think something more akin to the Soviet Politburo would have evolved.

In any case,Goering would have had a strong voice in Government and he was far too lazy and indolent to ever go to the trouble of starting a war.

The military build up would have continued,I think,but at a less frenetic pace.It would then have slowed once Germany had a sufficient deterrent to any plans Stalin may have had to head West.

And,of course Stalin always had plans.


Croesus said...

Franz - would it be possible to add something about the central banking role - or lack of same - at that time? I see the CBs as fundamental to our current problems.

James Lord said...

Also I'm sure that any would-be banksters would have been given pause for thoughtwith Mr. H. looking over their shoulders.

Anonymous said...

Savant, off topic a moment, just wondering if in Ireland if the once white area of your major cities where the diversity losers have taken over have turned into the crime ridden slums and boarded up shops in Americas cities wher the shit stains have taken up residense,just a random thought on our part,

SAVANT said...

anon asks "just wondering if in Ireland if the once white area of your major cities where the diversity losers have taken over have turned into the crime ridden slums etc."

I'd say that they don't as yet form that high of a proportion in any one area. But we're getting there! Certainly some areas of Cork are taking on that appearance, litter on steets and cars up on blocks, that kind of thing...........

Krokodil said...

Yes, there were nuisances. Particularly Jewish organizations calling for boycotts of German goods....

All said and done , the Nazis were hostile to the Jews quite some time before the Jews reciprocated!

Beyond that, Hitler was a prime ARSEHOLE - launching ambitious wars against huge powers that had, at best, only moderate chances of success (and his involvement and endless meddling making things drastically worse).

The orthodox history is suspect, I agree, but revisionist history can be even more suspect - and as the sarge said on Hill Street Blues: "let's be careful out there..."

Educated Edsel said...

Franz, that was excellent. Dear Papa had told me something of it, of course, but your elucidation is more concise. He wishes me to add his opinion that Icelanders have cojones, whereas we Irish have no more balls than a bull canary and such a factor counts for more than we reckon. Again many thanks,
Educated Edsel.

Dave C said...

UN: The $575m figure is correct, the ECB doesn't have $575Bn.

Franz said...

@ Croesus

Recently I read a book about the proceedings at the largest countries' Central Banks in the 20s and 30s ("Lords of Finance").

Much to my surprise (not) it turns out that these establishments were then precisely what they are now. Lewd houses of counterfitting, full of corruptocrats fellating equally corrupt politicians.

The Reichsbank under Schacht was an exception in so far as he rather quit his job than participate in completely debauching the currency. Much like the German ECB economist Jurgen Stark who walked away from the latest incarnation of the old counterfitting houses last friday.

I hope that after the next collapse people will have learned the lesson that you can't trust human beings with such a thing as printing money. It's like one of Tolkien's rings, corrupting whomever has it.

@ mr a

Seriously: I wish Hitler had been blown up. The best attempt was actually made by a single guy in 1939. Georg Elser was a master watchmaker, I believe. He masterfully booby-trapped a beer hall in which Hitler was scheduled to speak. Little did Elser know that Hitler would change his plans for that day. The rest, as they say, is history.

@ All those wondering about the Jew boycott

Let me repeat: Back then, the connected Jews certainly talked tough. But using backchannels, all the little Blankfeins of the day were eager to do business in Germany.

Apparently, they could not and still cannot resist any chance for a quick buck. Even if the life of their brethren or their own is at stake.

Actually, if Lloyd Blankfein was on a plane and noticed that all engines were burning, I'd wager that his last act on earth would be brisk trading of put-options of airline stocks on his noteboook. He would then meet his fiery end happy in the knowledge of the 5% gain he just scored.

nemesis said...

Franz, given your last comment, do I take it that you think Jews today would also circumvent a similar boycot? Agreed, if there's a lot of money at stake!

Franz said...

@ Educated Edsel

As far as the Icelanders are concerned: Aren't they admirable? To paraphrase an outdated and racist dead white man about that glorious little island:

"Though it is small, it is but fierce."

If the rest of the world had the courage and honesty to give the bankstas the finger in 2008, the worst of our econimic troubles would be over by now.

Thor said...

A lot of people would argue that Iceland has put itself in a worse position by tyaking the route it did.

Anonymous said...

Krokodil said...

Yes, there were nuisances. Particularly Jewish organizations calling for boycotts of German goods....

All said and done , the Nazis were hostile to the Jews quite some time before the Jews reciprocated!

Beyond that, Hitler was a prime ARSEHOLE - launching ambitious wars against huge powers that had,
at best, only moderate chances of success (and his involvement and endless meddling making things
drastically worse).

Krokodil, you'll probably get annoyed with me, but I have to disagree with a few of your points ... the first one All said and done , the Nazis were hostile to the Jews quite some time before the Jews reciprocated!

Er, no.

Allow me to give you an extract (verbatim) from the speech of Benjamin Freedman -- given before an audience in 1961 at the Willard Hotel in Washington, D.C. It's a long chunk of his speech, but it's .... interesting.

Here in the United States, the Zionists and their co-religionists have complete control of our
government. For many reasons, too many and too complex to go into here at this time, the Zionists and their co- religionists rule these United States as though they were the absolute monarchs of this
country. Now you may say that is a very broad statement, but let me show you what happened while we were all asleep.
What happened? World War I broke out in the summer of 1914. There are few people here my age who remember that. Now that war was waged on one side by Great Britain, France, and Russia; and on the other side by Germany, Austria-Hungary, and Turkey.

Within two years Germany had won that war: not only won it nominally, but won it actually. The German submarines, which were a surprise to the world, had swept all the convoys from the Atlantic
Ocean. Great Britain stood there without ammunition for her soldiers, with one week's food supply -- and after that, starvation. At that time, the French army had mutinied. They had lost 600,000 of the flower of French youth in the defense of Verdun on the Somme. The Russian army was defecting, they were picking up their toys and going home, they didn't want to play war anymore, they didn't like the Czar. And the Italian army had collapsed.

End part 1 -- The Zionist war against Germany

Uncle Nasty

Anonymous said...

Part two -- The Zionist war against Germany

Benjamin Freedman's 1961 speech (continued)

... Not a shot had been fired on German soil. Not one enemy soldier had crossed the border into Germany. And yet, Germany was offering England peace terms. They offered England a negotiated

peace on what the lawyers call a status quo ante basis. That means: "Let's call the war off, and let
everything be as it was before the war started." England, in the summer of 1916 was considering that -- seriously. They had no choice. It was either accepting this negotiated peace that Germany was magnanimously offering them, or going on with the war and being totally defeated.
While that was going on, the Zionists in Germany, who represented the Zionists from Eastern Europe, went to the British War Cabinet and -- I am going to be brief because it's a long story, but I have all the documents to prove any statement that I make -- they said: "Look here. You can yet win this war. You don't have to give up. You don't have to accept the negotiated peace offered to you now by Germany.
You can win this war if the United States will come in as your ally." The United States was not in the
war at that time. We were fresh; we were young; we were rich; we were powerful. They told England:
"We will guarantee to bring the United States into the war as your ally, to fight with you on your side, if you will promise us Palestine after you win the war." In other words, they made this deal: "We will get the United States into this war as your ally. The price you must pay is Palestine after you have won the war and defeated Germany, Austria-Hungary, and Turkey." Now England had as much right to promise Palestine to anybody, as the United States would have to promise Japan to Ireland for any reason whatsoever. It's absolutely absurd that Great Britain, that never had any connection or any interest or any right in what is known as Palestine should offer it as coin of the realm to pay the Zionists for bringing the United States into the war. However, they did make that promise, in October of 1916. And shortly after that -- I don't know how many here remember it - - the United States, which was almost totally pro-German, entered the war as Britain's ally.

Note the date above -- October 1916 ... Slap in the middle of the battle of the Somme. At the end of which The Allies had gained approximately only two miles and lost about 623,907 soldiers in the
process, meaning that one centimetre of advance cost about three men. Britain was on its knees.

Please go here and read the whole thing:-

Uncle Nasty

Anonymous said...

Thor said...

A lot of people would argue that Iceland has put itself in a worse position by tyaking the route it did.

Perhaps, Thor. But if the laughably-named leadership of South Africa in the 80's had one testicle between them and taken the so-called tougher route, I, and many thousands of other whites would still be living there -- and grateful for it.

Not to mention the scores of thousands of murder victims who would still be alive ... black and white.


Bemused stare said...

Thor said...

A lot of people would argue that Iceland has put itself in a worse position by tyaking the route it did.

And we're still waiting patiently for the sky to fall on the heads of Iceland's people. Don't know about you but I gave up holding my breath over here.

Thor said...

Bemused Stare: Well, the sky kind of has fallen in. I was there a few months ago and trust me, there's been a huge decline in the standard of living. But having said that, they're not in desperate straits.

Eimear said...

Followed through on that link UncleN. Just amazing. Nothing we read in school or the MSM can be believed. I'm really coming to that conclusion.

Franz said...

@ Thor

I don't doubt that the last couple of years have not been pleasant for the Icelandic people.

Yet, they are through the nadir of economic decline already. Almost the entire rest of the world still has to go there because we refused to man up in '08 and cut our losses.

And because we doubled, nay, exponezialized down on our bets, our nadir will be so much deeper. The piper always demands pay eventually. And the fee for years of faux-prosperity will be steep indeed.

Anonymous said...

This may or may not be off topic.If it is its only by 2500 years or so.

I don't even know if this will interest anyone:it may,as a curiosity,but it struck me last night as I was re-reading Tom Hollands "Persian Fire".Anyway,its a lengthy quote from the book,so bear with me.
This passage refers to Darius Ist conquest of Babylon.

"Sentimental notions of loyalty to the old regime could hardly be expected to stand in the way of profit.The Egibis,for instance,a dynasty of bankers who had been operating as agents to the native Dynasties of Babylon for decades,had no sooner witnessed the downfall of Nabodinus than they were smoothly accommodating themselves to the new order.Within a couple of years they had opened offices throughout Persia,diversifying enthusiastically into fields as varied as the slave trade and hawking marriage contracts(?).Then,suddenly,caught short by the revolt in Mesopotamia,the Egibis found themselves facing the late autumn of 522BC,their headquarters in Babylon had lost contact with the regional branches.Two of the family's brothers were cut off in Persia.The bank's debts began to mount.As far as the Egibis were concerned,their city's rebellion promised not liberation but disaster.The sooner it was quelled and stability restored to the markets the better."

Surprisingly modern,I thought,but then the spark of a memory popped up in my cobwebbed and arthritic brain.And then,finally,I isolated this recollection.

My wife is an admirer of Gore Vidals novels.I loathe the man and I'm not too fond of his writing either.But I will admit that his novel "Creation"(1981)is superb.Its set in the same period as "Persian Fire" and the Egibi family were mentioned.

(This is my own translation from German and I'm no artist)
Shirik Egibi was friendly,watchful,totally unimpressed by me.He led me into a long high room,the walls lined with shelves,on which were thousands of clay tablets."Some of those records are more than a century old" he said "To the days when our family first came to Babylon".Then he smiled."We are Hebrews,but NO,we were not slaves.There is a legend that we were Hebrew prisoners,brought here after the fall of Jerusalem.But we were never slaves.We established ourselves here in Babylon LONG before their arrival"

That's it.An overly long post,so my apologies,but interesting I think.

522BC or 1922 AD


Heraclitus said...

Actually Mr. a. I found that quote very interesting and VERY applicable to today I think! "plus ça change, plus c'est la même chose"

Anonymous said...

Eimear said...

"... Nothing we read in school or the MSM can be believed. I'm really coming to that conclusion."

If you liked that Eimar, you're going to love this ... an alternative to what you're taught about World War One or the Great War as it was called then.

Fire up the 44 gallon coffee drum, and the waffle maker and spend the weekend here:-

A quote:-

"The seeds of World War One were not nurtured amid lofty principles of liberty, religious
freedom or from a need to topple cruel despots. It was a conflict conceived in smoke-filled board rooms, political offices, stock exchanges and banks on both sides of the Atlantic and carried to term by various parties who stood to gain politically or financially.

Birthed into the waiting arms of jealousy, politics and greed, it was a banal, vile creation, an artificially inseminated monster that maimed and murdered a generation of young men and laid a direct pathway to another war.
To achieve this goal, motivations and villains had to be artificially crafted.
What ensued was the largest ethnic assault in human history."


Anonymous said...

Dave C said...

UN: The $575m figure is correct, the ECB doesn't have $575Bn.

Thanks for that confirmation, Dave.

I think it says a lot about our present condition, that one can look at a sum of $575 million and say:- "Can't be right ... that's loose change."

We have been so bludgeoned with talk of millions, billions and trillions that we think thousands are what you find at the back of the sofa.

Politician's sofas, anyway.


Tony VA said...

Dave C, UN. This is true, and I often wonder if it's deliberate? I've seen SO MANY 'experts' confuse millions with billions and billions with trillions. Is it a plot to anasthetize the proles?

Anonymous said...

Thanks for mentioning "Lords of finance" Franz.I remember reading the reviews when it was published but then I promptly forgot the title.

Will purchase it asap.